High street sales keep growing despite inflation rising

High street sales have continued to grow strongly despite high inflation after the Brexit vote, official data reveals today.

The amount bought in August 2017 was 1 per cent higher than in July – with non-food products driving the growth.

Sales were 2.4 per cent higher than a year before in the 52nd consecutive month of growth.

Booming sales came despite food and fuel not increasing – meaning the rise is in people buying ‘non-essential’ items, the ONS said.

The figures will be seen as proof consumers have confidence in the Brexit economy.

The data could be encouraging for the Chancellor as he plots the Budget in November amid fears high inflation is squeezing wages and hitting family budgets.

Kate Davies, ONS Senior Statistician said: ‘Within this month’s retail sales we are seeing strong price increases across all store types compared with a year ago, reflecting wider inflationary pressures.

‘However, we are still seeing underlying growth in sales volumes, and with strong growth in non-essential purchases as consumers continued to buy more from non-food stores.’

Average prices in stores have been growing since the EU referendum in the second half of 2016.

The amount of clothes and shoes bought is up 3.4 per cent – meaning a 7.9 per cent increase in the amount spent because of inflating.

Booming sales came despite food and fuel not increasing – meaning the rise is in people buying ‘non-essential’ items, the ONS said

Other retailing, excluding food, has seen sales volumes rise strongly at 5.9 per cent, with spending up 8.9 per cent. 

On the internet, overall sales are up 15.6 per cent – making them 16.4 per cent of all sales.

Online sales of food were up 13.8 per cent year on year and non food surged by 16 per cent.